Gyorgy Matolcsy, governor of the Central Bank of Hungary, highlights that the only policy anchor the central bank has is its inflation target, and that it does not intervene to help the currency.
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Hungary's decision to help its citizens pay back the foreign exchange loans they took at the height of the economic boom a few years back has sparked outrage among banks and spooked foreign investors.
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Hungary's government is taking steps to pull the country out of the difficult economic conditions it still faces but needs to ensure predictability, Eleni Tsakopoulos Kounalakis, US Ambassador to Hungary, told CNBC.com.
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Since it was elected last year, Hungary's government has aggressively aimed to cut the country's debt burden, through raising taxes and nationalizing private pension assets, amongst other measures.
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